The economic impact of the recent crisis has affected the manufacturing industry on a global scale. Today, our customers (both big and small) are reporting strained revenues and a painful reduction in profits and resources.
With more countries moving into recovery mode, economies are ramping up to meet surging customer demand. Businesses adapting from firefighting to strategizing, have the highest chances of not only surviving but also capturing future growth opportunities left behind by their slower competitors.
To ensure a fast recovery from the global Covid-19 crisis, manufacturers need to prioritize these 3 key areas.
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1. Closing digital gaps
Covid-19 has accelerated the digitalization for many mid-sized organizations--even if they weren’t ready for it. It exposed many serious gaps in their IT infrastructure, such as remote working support. Now that remote working is standard, IT priorities have shifted to focus on unifying and streamlining core business processes and systems.
Manufacturers are now beginning to realize those legacy systems where the production backend is not connected to sales or the customer data are simply not sustainable. Advanced digital sales solutions such as your Configure Price Quote (CPQ) should be integrated end-to-end. This helps manufacturers ensure high accuracy in sales, order, and production that will provide much-needed boosts in revenues.
2. Customer centricity
After the initial demand shock, companies are re-discovering the power of customer relationships. Commitment to understand and fulfill customer requirements is a tested winning strategy.
Manufacturers that can produce customized CTO or ETO quotes—while delivering a comprehensive suite of products and solutions—have been shown to record up to a 15% increase in revenue.
Manufacturers have always known that intensified customer engagement and lower operating costs are key profit drivers. But in times of crisis, customer excellence initiatives supported by solutions such as an industry-specific CPQ have proven to be indispensable.
Companies now rely on robust aftersales services to meet customer demands beyond their initial purchases. Today, more manufacturers are focusing their efforts on improving their commerce solutions, such as their Sales or Distributor Portals, to deliver higher profit margins and discover new revenue streams faster.
3. Business agility and innovation
Covid-19 has created a challenging climate for manufacturers. While some struggle to keep their workforce safe and their businesses solvent, the more agile players were able to explore new opportunities. Distilleries are producing disinfectants. Car manufacturers are producing medical ventilators or developing exclusive hygiene solutions for cars.
What do these companies have in common?
They have identified demand changes early and were able to adapt quickly. With a digital development-to-production chain, these businesses were able to change their business models on the fly. Their agility and innovation not only contributed to increased revenues but also helped to build a foundation that could withstand future crises.
It's time to reimagine the future